Subsidiary liability and fraudulent transactions
Defending directors and beneficial owners against being held subsidiarily liable for the debts of the company or, conversely, pursuing the bad-faith managers of a debtor in the interests of creditors. Having transactions concluded by the debtor to the detriment of creditors declared invalid: stripping of assets, sales at an undervalue, transfers for no consideration, and the return of property to the liquidation estate.
Subsidiary liability of managers and owners
Defending directors and beneficial owners against being held subsidiarily liable for the debts of the company - or, conversely, pursuing the bad-faith managers of a debtor in the interests of creditors.
In recent years subsidiary liability has become one of the most effective mechanisms for protecting the rights of creditors. At the same time it creates significant risks for the owners of businesses and the managers of enterprises.
PROCTOR analyses in full the history of the company's activity, its financial decisions, the corporate changes, the conduct of its officers and the documents that confirm the good faith of their actions.
We build the defence so as to show the absence of any causal link between the management decisions and the insolvency of the enterprise, minimising the risk of personal liability being imposed on the client.
Challenging fraudulent transactions
Having transactions concluded by the debtor to the detriment of creditors declared invalid: stripping of assets, sales at an undervalue, transfers for no consideration. Return of property to the liquidation estate.
How we run such a dispute
The steps from gathering the company's documents to the court's decision on liability or on the transaction.
01
Reconstructing the company history
We go back over the financial decisions, the corporate changes, the contracts and the movement of assets in the period before insolvency, to see the real picture of events.
02
Assessment of the risk
We work out which episodes a court could hold against a manager or an owner and which transactions can realistically be challenged. The result is a written opinion broken down by episode.
03
Gathering the evidence
We build the evidential base: underlying documents, statements, expert opinions, register data and correspondence showing good faith or, conversely, intent to harm creditors.
04
The position in court
We file the application or the response and conduct the hearings, proving the presence or the absence of a causal link between the decisions of the officers and the insolvency of the company.
05
Enforcement of the decision
We support the return of property to the liquidation estate or, on the side of the defence, the lifting of attachments and restrictions from the client's personal assets.
Formats of work in the dispute
The format depends on whether you are defending your own assets or recovering property stripped from the debtor.
Assessment of personal risk
A check of the episodes for which a director or a beneficial owner could be held subsidiarily liable, with an opinion on the weak points and the documents worth gathering in advance.
Conduct of one dispute
Full support of a single application: on subsidiary liability or on the invalidity of a particular transaction, from the preparation of the position to the court's decision.
Defence of the whole period
Work on every episode at once: chains of transactions, several defendants and parallel disputes in the insolvency case, with a single line of defence for the manager and the owners.